Daniel's Corporation makes two types of replacement fittings for heavy construction equipmentscrews and bolts. Data regarding the two products follow:

	Direct Labour-Hours per Unit			Annual Production
Screws		0.20		40,000	units
Bolts		0.10		60,000	units

Additional information about the company follows:

1. Screws require $9.00 in direct materials per unit, and bolts require $7.00.
2. The direct labour wage rate is $50 per hour.
3. Screws are more complex to manufacture than bolts, and they require special equipment.
4. The ABC system has the following activity cost pools:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost			Activity
					Screws	Bolts	Total
Machine setups	Number of setups	$	30,000		80	40	120
Special processing	Machine-hours	$	240,000		4,000	0	4,000
General factory	Direct labour-hours	$	630,000		7,000	14,000	21,000

Compute the activity rate for each activity cost pool.

Activity Cost Pool	Activity Rate
Machine setups		per setup
Special processing		per MH
General factory		per DLH

Determine the unit cost of each product according to the ABC system, including direct materials and direct labour.

Screws	Bolts
Direct materials
Direct labour
Overhead
Unit cost